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ACCA Applied Skills · Corporate and Business Law (Global) · Company meetings and resolutions

Kestrel Engineering Ltd, a private company, has three directors who meet each month to approve contracts and review performance. The company secretary asks whether this is a general meeting for company law purposes. What is the correct classification?

The monthly meeting is a board meeting, because it is attended by directors to manage the company. General meetings are meetings of members, so it is not an annual or extraordinary general meeting, nor a class meeting.

  1. AIt is a board meeting, which is a meeting of directors and not a general meeting of membersCorrect
  2. BIt is an annual general meeting because it is held regularly
  3. CIt is an extraordinary general meeting because directors attend
  4. DIt is a class meeting because directors hold shares

Explanation

A meeting of the directors to manage the company is a board meeting. General meetings, whether annual or extraordinary, are meetings of members. Regularity does not make a meeting an annual general meeting, and directors attending does not make it extraordinary. Directors holding shares does not make it a class meeting either.

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